“The deciding factor was the sanctions issued by OFAC (Office of Foreign Assets Control) on the evening of April 7,” the WDC said. “The termination of membership includes the termination of all rights and benefits that WDC members have. Such as board membership and membership on any WDC committee.”.
The WDC, which represents the industry in the Kimberley Process (KP), is established in the US state of Delaware. In addition, OFAC, a division of the US Treasury Department, has banned US organisations from doing business with Alrosa.
The latest US measures prohibit transactions involving Alrosa's assets unless specifically authorised or exempted.
Accordingly, US companies that did not cease direct trade with Alrosa after the previous sanctions “must now definitely stop doing so”. This is what the Jewellers Vigilance Committee (JVC) wrote in a notice to its members.
“The safest course of action for all US businesses is to inform all suppliers that they will no longer purchase Alrosa products.” That's according to the organization, which provides legal guidance to the trade. The interpretation of this new directive has not yet been made clear to OFAC or US Customs. But if a US company continues to trade these goods, even indirectly, it risks facing problems in importing or freezing assets.”.
Several trading groups have suspended ties with Alrosa and other Russian companies in light of the Western sanctions. The sanctions have been growing since Russia's invasion of Ukraine on February 24.
The World Jewellery Confederation (CIBJO) has confirmed that Andrey Yurin is no longer on its board of directors. He has also ceased to be vice-chairman of the precious metals committee. Andrey Yurin is the head of Gokhran, the Russian state depository of precious stones. Gokhran, previously a member of CIBJO, assumed “observer” status.
